SEC wants to dig deeper into US-related activities of cryptocurrency firm PlexCorps

Maria Nikolova

The SEC wants detailed information from PlexCorps’ founders and managers about their trips to the US and their communications with US residents.

The United States Securities and Exchange Commission (SEC) has once again demonstrated its determination to prosecute cryptocurrency fraud. On Wednesday, April 25, 2018, the Commission filed a set of Interrogatories with the New York Eastern District Court requests that the defendants in a virtual currency fraud case targeting PlexCorps (also known as PlexCoin) and Dominic Lacroix, Sabrina Paradis-Royer, and Sidepay, respond to these interrogatories on or before April 30, 2018.

  • In particular, the Interrogatories concern electronic mail addresses used by the defendants (or by anyone acting on their behalf) in connection with PlexCoin. For each E-Mail Address, they have to state details such as the name(s) of the individuals with access to the E-Mail Address and the date(s) each had access.
  • The Interrogatories also concern all social media accounts, including for, but not limited to, Facebook, LinkedIn, Twitter, Instagram, Flickr, and Google, used by the defendants (or by anyone acting on your behalf) in connection with PlexCoin. For each Social Media Account, they have to state details such as the name(s) of the individuals with access to the account and whether they still have access to the account.
  • The defendants will also be requested to list all electronic databases created or accessed containing PlexCoin investor information.

There are some disagreements between the defendants and the SEC about the US activities of the alleged fraudsters. Thus, for instance, the defendants allege they travelled to the United States just for pleasure, whereas the SEC does not believe that no business was conducted during the trips in question. Also, the defendants allege that they had investor bases solely with Shopify. The evidence uncovered by the US regulator, however, shows that there were client bases with other vendors like Square.

The interrogatories concerning emails stem from certain claims by the defendants. For instance, one of them – Ms. Paradis-Royer, is said to have never sent an email to a person in the United States.

The case against PlexCorps has demonstrated the persistence of SEC when prosecuting cryptocurrency scammers. Earlier this month, the US regulator obtained a Court order that asks the Quebec Superior Court for judicial assistance with regard to one of PlexCorps’ employees. Yan Ouellet, has assisted the firm in, inter alia, setting up and/or running PlexCorps’ and PlexCoin’s websites. The order demonstrated that even marketing assistants and “IT guys” at cryptocurrency firms are not shielded from SEC’s enforcement actions, when it comes to fraud.

The US regulator alleges that it has to stop Lacroix, a recidivist securities law violator in Canada, and his partner Paradis-Royer from further misappropriation of investor funds illegally raised through the fraudulent and unregistered offer and sale of securities called “PlexCoin” or “PlexCoin Tokens” in a purported “Initial Coin Offering”.

Read this next

Institutional FX

OpenYield launches “cheap and easy” fixed income trading for brokers

“We’re on a mission to make bonds cheap and easy to trade, and are excited about the opportunity to build generational capital markets infrastructure.”

Digital Assets

Sumsub and Mercuryo publish a guide for VASPs: “Mastering Travel Rule Compliance”

“At Sumsub, we’ve concentrated our efforts on filling the gap in understanding the complexity of Travel Rule regulation and helping organizations find the best solution to stay safe and compliant while minimizing costs and avoiding potential risks of non-compliance. This guide we created with Mercuryo, our trusted partner, is the ultimate navigation tool all VASPs can consult.”

Digital Assets

Bitget Wallet Leads with Record Swap Volume & New Crypto Innovations

This week, Bitget Wallet achieved a milestone by surpassing Metamask with a record 388,757 Swap order transactions, securing the global lead. The significant 7-day trading volume, almost 68,000 more than its rival, underscores its liquidity and user trust. This robust activity signals Bitget Wallet’s prominent role and reliability in the dynamic crypto market.

Digital Assets

Embarking on a Digital Currency Journey

Imagine you’ve stumbled upon a treasure map, leading you to untold riches hidden in the vastness of the internet. Instead of gold coins and jewel-encrusted goblets, this treasure comes in the form of digital currencies, the modern-day loot coveted by many.

Reviews

Traders Union Experts Share The Trading Analyst Review For 2024

Navigating options trading in rapidly shifting markets poses a considerable challenge. This is where options trading alert services become invaluable. They aid traders in keeping abreast of evolving opportunities and market trends. In this assessment, Traders Union experts scrutinize The Trading Analyst alert service to ascertain its efficacy. 

Digital Assets

BlockDAG’s Presale Achieves $9.9M: Aiming For A 5000-Fold ROI As Cardano’s Price Rises And Fantom Launches Sonic

Explore Cardano’s surge, Sonic’s efficiency, and why BlockDAG’s growth makes it the top crypto choice. A deep dive into the future of blockchain investments.

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

Digital Assets

BlockDAG Presale Raises $9.9M as Batch 5 Nears Sell-Out Amid Bonk’s Fluctuating Trading Volume & Spell’s Bullish Price

Explore BONK’s trading volume, SPELL’s market shifts, and why BlockDAG’s 10,000 ROI makes it an ideal crypto for savvy investors in 2024.

Digital Assets

Bybit expands into Europe amid regulatory scrutiny

Dubai-based cryptocurrency exchange Bybit is expanding its operations in Europe after encountering regulatory challenges in Hong Kong.

<